Having life insurance is crucial if you want to protect your family from financial struggle in the event of your unexpected death. A life insurance policy will ensure your family members receive a sum of money when you pass away, as long as you comply with your premium payments. The life insurance coverage will end if you stop paying the premiums unless your policy has a waiver of premium provision. In that case, your policy will still be valid even if you skip some payments.
A supplemental benefit
A waiver of premium is a provision that some life insurance policies have. Everyone can ask for this additional benefit when they create their insurance contract. This provision has an extra monthly cost, but its purchase may be worth it as it allows the insured to waive their premium payments if they get a severe injury or illness that prevents them from working. The cost for the waiver varies depending on the insurance company and the scope of protection this provision offers.
How a life insurance waiver of premium works
You must add the provision when you sign your contract with the insurance company, as you can’t add a life waiver to an existing policy. You also cannot add this provision if you have an existing disability. If your policy does have it, you’ll be able to maintain the coverage in your life insurance policy as long as you have a disability that qualifies according to your policy. To get coverage under the waiver provision, you’ll need to submit a separate claim under your life insurance policy. You must do this as soon as possible, as insurance companies have different deadlines to file a life insurance waiver of premium claim.
You must know that the insurance company won’t waive your payments right after you file a claim. Instead, you’ll be put on a waiting period in which you’ll have to keep paying your premiums. Once the waiting period is over, the insurer will refund you all the payments you made during that period. After that, the insurance company will waive your payments until your condition improves and you can work again.
Protecting your rights
If you have a life insurance waiver of premium provision in your policy, you have the right to file a claim and activate the waiver if you cannot pay your premiums due to a serious health condition. With a life waiver of premium, your family will be able to claim death benefits in the event of your death, even if you did not pay for your premiums for a certain amount of time. Your insurance company must respect the contract you have with them and maintain your life insurance coverage.